Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Where next for American Airlines’ share price in 2020?

The airline continues to trade at a 60% upside a week after it announced plans to ramp up flight capacity both domestically and internationally.

Source: Bloomberg

American Airlines Group remains one of the top five traded stocks on IG, nearly a week after the company said it is planning to ramp up its domestic capacity and flight schedule.

The stock is currently trading with a 56% upside from the price when the announcement was first made. Shares closed at US$18.52 per share on Tuesday 09 June 2020 – nearly US$7 higher than last week’s levels, IG data showed.

American Airlines to increase domestic and international capacity

Last Thursday 04 June, the airline announced via a press release that it is aiming to resume more than 55% of its July 2019 domestic routes in July 2020, ‘in response to improving demand for air travel’.

The airline noted that it saw an increase in demand in May 2020. By the last week of May, the airline carried a daily average of about 110,000 customers per day — an increase over the approximately 32,000 average daily customers the airline served in April.

Vasu Raja, American Airline’s Senior Vice President of Network Strategy, said that the move was implemented after a ‘careful review of data’, adding that the July schedule includes the smallest year-over-year capacity reduction since March.

Gain access to American Airlines and other US airline stocks by signing up for a live or demo IG account today.

The Fort Worth-based airline also hopes to restore close to 20% of its July 2019 international routes starting from July 2020, although it expects international demand to recover at a slower rate.

Nevertheless, it has restarted service to eight global destinations, including from Dallas-Fort Worth (DFW) to Amsterdam (AMS), Paris (CDG) and Frankfurt (FRA), as well as service from Miami (MIA) to Antigua (ANU) in the Caribbean and Guayaquil (GYE) and Quito (UIO) in South America.

Starting from 05 August, American Airlines will also resume flights from Philadelphia and Charlotte to various European hubs.

American Airlines stock has more room to grow?

This decision to ramp up the flight schedule has also come on the back of improved market sentiments of recent weeks, as economies and countries begin to ease their Covid-19 lockdown restrictions.

US stock markets have also reflected the gradual return to normalcy, with the S&P 500, Dow Jones Industrial Average and Nasdaq indexes each experiencing daily gains averaging 1% last week.

For now, the American Airlines share price is still trading roughly 68% below its 2020 high of US$58 per share, which indicates that there is more room for the stock to grow in the coming months.

On a year-to-date basis, American Airlines shares are down over 35%. This is how it stacks up against its domestic competition: United Airlines – down by 49%; Delta Air Lines – down by 42%; and Southwest Airlines – down by 30%.

The current consensus on the stock among 19 investment analysts polled by FactSet is to ‘sell’, with eight analysts rating it so. Meanwhile six analysts have rated it a ‘hold’ with two others rating it a ‘buy’.

How to trade US airline stocks with IG

Are you feeling bullish or bearish on American Airlines, Delta Air Lines and other US aviation shares? Either way you can buy (long) or sell (short) the asset using derivatives like CFDs in a few easy steps:

  • Create a live or demo IG Trading Account or log in to your existing account
  • Enter <company name> or <ticket code> in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.